John Deere booth sign is displayed at CES 2023 at the Las Vegas Convention Center on January 6, 2023 in Las Vegas, Nevada.
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FTC sues farm equipment giant Deere & CompanyThe agency argued its monopoly on repair services increased costs and caused delays for farmers declare Wednesday.
this litigation Claims Deere has for decades hindered customers’ ability to repair equipment such as tractors and combine harvesters, forcing them to rely on the company’s network of authorized repair providers. The FTC said Deere needed a software tool called “Service ADVISOR,” which is only available to pricier authorized dealers, and is needed to fully repair equipment that farmers and independent repair providers cannot do on their own. Get the job done.
The FTC said authorized dealers often used Deere-brand parts instead of less expensive generic parts to perform repair work, which increased Deere’s profits.
“Unlawful maintenance restrictions can be devastating to farmers, who rely on affordable and timely repairs to harvest their crops and earn income,” FTC Chairwoman Lena Khan said in a press release. “Federal The Trade Commission’s action today aims to ensure farmers across the United States have the freedom to repair their own equipment or use the repair shop of their choice – reducing costs, preventing devastating delays, and promoting fair competition among independent repair shops.”
Illinois and Minnesota are also plaintiffs in the lawsuit.
The lawsuit seeks to provide Deere customers and independent repair providers with service advisors and other necessary repair resources. The FTC said other manufacturing companies in the trucking and automotive industries provide the information needed to developers of universal repair tools.
Deere did not immediately respond to a request for comment. Its shares were down less than 1% Wednesday afternoon.
The lawsuit comes in the final days of President Joe Biden’s term in the White House and Khan’s tenure at the FTC, during which the agency took an aggressive stance on antitrust. It’s unclear whether President-elect Donald Trump’s administration will proceed with the lawsuit against Deere.
